All this week I have been writing about what the THD indicators were indicating on each of the markets. Each day, the THD tools have been right on the money. This morning has been no exception. So for those who want to know if the THD indicators and methodology work, this morning at about 5am ET, I wrote another Futures Watch as to what I thought the markets would be doing. What actually happened is in red. And, the 720 minute ADX peaks have not even come in yet!
The Nasdaq 180 minute ADX is at 80.06 and we are seeing diverging volume as price is making new highs. Although there is another 35 points to go for the Weekly chart to reach the ATR, we may see a pullback to the ATR on the 180 minute chart (2682.00). As of 11:15, the Nasdaq had fallen 18 points.
On Gold sellers stepped up and took prices lower. On the Weekly chart, Gold has actually been in a trading range since October 2011 and is now heading downward to the support area of 1560. On the 180 minute we have had a very flat magenta dot appear and price has stalled with buyers being very weak and unable to take price upwards. I would expect more downward movement. As of 11:15, Gold had dropped another 12.6 points.
Then on the Euro, Swiss Franc, and British Pound, we have the 180 and 720 minute charts both at extremes on the ADX and RSI. On all three of the currencies (EC, SF, and BP), we have strong divergence on the highs. A test for sellers is needed.
Euro dropped 58 ticks, British Pound dropped 41 ticks, and Swiss France dropped 41 ticks.
And on the Yen, we are overextended on the 1440 with divergence coming in indicating a test for buyers is needed. Additionally, the THD ADX is at 65 on both the 180 and 720.
Yen went up 58 ticks (it had been falling and the extreme conditions were indicating upwards movement).